Insiders are the top stockholders in Aeris Indústria e Comércio de Equipamentos para Geração de Energia S.A. (BVMF:AERI3), and the recent 17% drop might have disappointed them

Key Insights

• Significant insider control over Aeris Indústria e Comércio de Equipamentos para Geração de Energia implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 55% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Aeris Indústria e Comércio de Equipamentos para Geração de Energia S.A. (BVMF:AERI3) can tell us which group is most powerful. The group holding the most number of shares in the company, around 46% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 17% decline in share price, insiders suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Aeris Indústria e Comércio de Equipamentos para Geração de Energia.

Check out our latest analysis for Aeris Indústria e Comércio de Equipamentos para Geração de Energia

What Does The Institutional Ownership Tell Us About Aeris Indústria e Comércio de Equipamentos para Geração de Energia?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Since institutions own only a small portion of Aeris Indústria e Comércio de Equipamentos para Geração de Energia, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in Aeris Indústria e Comércio de Equipamentos para Geração de Energia. The company's largest shareholder is BTG Pactual G7 Holding S.A., with ownership of 38%. With 17% and 11% of the shares outstanding respectively, Vera Sarnes Negrão and Fernanda Sarnes Negrão are the second and third largest shareholders. In addition, we found that Alexandre Sarnes Negrao, the CEO has 2.2% of the shares allocated to their name.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Aeris Indústria e Comércio de Equipamentos para Geração de Energia

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Aeris Indústria e Comércio de Equipamentos para Geração de Energia S.A.. Insiders own R$310m worth of shares in the R$673m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 38%, of the Aeris Indústria e Comércio de Equipamentos para Geração de Energia stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Aeris Indústria e Comércio de Equipamentos para Geração de Energia you should be aware of, and 2 of them are potentially serious.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.